Sports betting popularity by state
In addition to taking on the risks of gambling, taxpayers must pay their regular income tax rate on net winnings. U.S. states collected $2.6 billion in taxes on sports betting in 2024, a 29% increase from the year before. Incentivized by this tax revenue, many states have been loosening their sports-betting laws, with more considering similar action. Online sports-betting platforms such as DraftKings and FanDuel have proliferated in response. The taxes on wins, in turn, can serve as a proxy for overall sports-betting activity.
With the current dynamism of gambling legislation across the nation, SmartAsset ranked 43 states with available data based on the total taxes collected from sports betting in each state, including relative proportions of the tot

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